SSE to rescue as Atlantic goes broke

THE LAST of the major independent UK household energy suppliers went bust last night but has immediately been rescued by Scottish & Southern Energy.

The demise of Atlantic Electric & Gas, however, was damned by consumer groups as a 'blow for competition' that could allow the big six energy suppliers to raise prices unfettered.

Loss-making, debt-laden Atlantic was put into administration yesterday evening in a pre-arranged deal that Southern Electric group SSE would take on its 300,000 customers.

SSE is paying £90m for the customers and the associated debt book. Atlantic's liabilities are being handled by insolvency experts from KPMG.

The deal marks the withdrawal from the UK market of US power group Sempra Energy, which acquired a majority stake in 2000. Other major shareholders include John Shannon, the former boss of retailer Country Casuals who now heads the Stead & Simpson shoe shops chain.

Allan Asher of the energy watch lobby group said: 'This is a blow for competition in the energy market. The loss of one of the cheapest suppliers is not welcome and consumers are facing an everdecreasing choice of suppliers.'

SSE is now fourth in the UK power suppliers' league with 5.5m customers.